Yahsat Reports Strong Revenue and EBITDA Growth in 2022

Key financial guidance targets met or exceeded

Contracted future revenues of AED 7.3 billion [USD 2.0 billion]

Equivalent to 4.6 times annual revenue

Robust balance sheet and strong cash generation to support progressive dividend and future growth across government and commercial businesses

Abu Dhabi, United Arab Emirates, 28 February 2023: Al Yah Satellite Communications Company PJSC ( Yahsat or the Group ), the UAE's flagship satellite solutions provider listed on the Abu Dhabi Securities Exchange ( ADX , under symbol: YAHSAT, ISIN: AEA007501017) announced today its consolidated financial results for the fourth quarter and full year ended 31 December 2022.

For the twelve-month period, the Group delivered robust growth in revenue and Adjusted EBITDA, which increased 6% and 7% respectively year-on-year, meeting and exceeding financial guidance targets.

The Group's positive performance was primarily driven by the Managed Solutions segment which delivered exceptional results in each quarter of the year and saw revenue increase significantly by 41% year-on-year to AED 333 million [USD 91 million]. Infrastructure, the Group's largest business segment, continued to deliver stable and predictable returns, reporting AED 872 million [USD 238 million] in revenue for the period, 1% higher than the prior year.

Highlights for the full year include:

Revenue of AED 1.6 billion [USD 433 million], up 6% year-on-year, driven by strong growth of 41% in Managed Solutions and stable performance across the Infrastructure and Mobility Solutions businesses.

Adjusted EBITDA of AED 946 million [USD 258 million], up 7% year-on-year, delivering a superior margin of 60%.

Normalised net income of AED 390 million [USD 106 million] up 31% year-on-year, generating a strong margin of 25%.

Contracted future revenue of AED 7.3 billion [USD 2.0 billion], equivalent to 4.6 times annual revenue for the year 2022.

Robust balance sheet with negative net debt, strong cash position and long-term visibility of future cash flows, continues to support Yahsat's investment in organic growth as well as opportunistic acquisitions, without impacting its progressive dividend policy.

Proposed full year dividend of AED 16.12 fils [USD 4.39 cents] per share or AED 393 million [USD 107 million], 2% higher than the prior year, of which 50% was paid as an interim dividend in October 2022 and the remaining amount is expected to be paid as a final dividend in May 2023 subject to shareholder approval at the upcoming annual general meeting.

Musabbeh Al Kaabi, Chairman of Yahsat, commented: In a year of continued transformational change for the satellite industry and against a backdrop of global economic headwinds and tighter financial conditions, the Group continues to deliver impressive top-line revenue growth, a superior margin and healthy cash flows, positioning it to sustain and grow its dividend and invest in organic and inorganic growth opportunities.

The true test of a companys performance, however, is its ability to deliver on its promises, and Im pleased to see Yahsat's management team firmly meet or exceed the financial targets set out in our first full year as a publicly traded company following the successful IPO in July 2021. This reliable and steady progress bodes well for creating further shareholder value as we work on executing Yahsat's growth strategy.

In turn, the Board is also pleased to recommend a total dividend for the year of 16.12 fils, which, based on Yahsat's current share price, implies a dividend yield of more than 6%, one of the highest yields amongst UAE listed equities. We expect to continue growing Yahsat's dividends by at least 2% per year underscoring the Board's confidence in Yahsat's future growth potential and long-term visibility of cash flows.

Ali Al Hashemi, Group Chief Executive Officer of Yahsat, said: Yahsat delivered strong growth in 2022, reinforcing and expanding its role as the preferred partner of the UAE Government for satellite solutions. We now provide complete end-to-end managed solutions to the UAE government under a new, expanded mandate that includes technology management services. The launch of the Thuraya-4 NGS satellite in 2024 followed by two potential new satellites, Al Yah 4 and Al Yah 5, demonstrates our commitment to sustaining our core government business, presenting unique growth opportunities for the Group that are expected to further secure our long-term financial outlook beyond 2026.

In our commercial businesses, we are refocusing on areas of higher growth and profitability. This includes targeting various industry verticals, such as oil and gas, health and education, and maritime, and offering both mobile and fixed satellite services to meet their satellite connectivity needs. New products under development for the Thuraya-4 NGS satellite will also be offered to commercial customers, underpinning organic growth, whilst opportunistic acquisitions will allow us to further expand our product portfolio and customer base.

Looking ahead, we remain confident in the Group's underlying health and resilience, which is supported by a robust balance sheet and a substantial contracted future revenues of approximately AED 7.3 billion [USD 2 billion]. This financial strength will help drive our future ambitions as we pursue a range of promising growth opportunities across IoT, government, maritime and enterprise data solutions, playing to our many strengths and driving sustainable long-term growth.

The full set of fourth quarter and full year financial disclosures, including a more detailed Management Discussion & Analysis report, can be found within the Investor Relations section on Yahsat's website.

Note to Editors:

Normalised Net Income is net income adjusted for material, one-off items recorded during the

LINK:	https://www.yahsat.com:443/en/news-and-media/news/2023/yahsat-reports-...
	See more stories from yahsat

More from Yahsat